72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
Enrolled
House Bill 2211
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for Department of Transportation)
CHAPTER ................
AN ACT
Relating to motor vehicle fuel dealer bonds; creating new
provisions; amending ORS 319.050 and 319.060; and repealing
section 12a, chapter 769, Oregon Laws 1999.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 319.050 is amended to read:
319.050. (1) At the time of filing the certificate and
application for a dealer's license, the Department of
Transportation { - must - } { + shall + } require the dealer
to file with the department, in { - such - } { + a + } form
{ - as shall be - } prepared by the department, a bond
{ - duly - } executed by the dealer as principal with a
corporate surety authorized to transact business in this state.
The bond shall be payable to the State of Oregon conditioned upon
{ - faithful - } performance of all the requirements of ORS
319.010 to 319.430 { - and 319.990 (1) to (3) - } , including
the payment of all taxes, penalties and other obligations of the
dealer { - , - } arising out of ORS 319.010 to 319.430
{ - and 319.990 (1) to (3) - } .
{ - (2) The total amount of the bond or bonds required of any
dealer shall be fixed by the department and may be increased or
reduced by the department at any time subject to the limitations
provided in this section. The total amount of the bond or bonds
required of any dealer shall be equivalent to twice the estimated
monthly license tax, determined in the manner the department
deems proper. However, except as provided in subsection (3) of
this section, the total amount of the bond or bonds required of
any dealer shall never be less than $1,000 nor more than
$100,000. - }
{ - (3) The total amount of the bond or bonds required of
persons described in this subsection shall never be less than
$1,000 nor more than $250,000. This subsection applies to the
following: - }
{ - (a) A person who first applies for a dealer's
license. - }
{ - (b) A person who has not faithfully performed, as
determined by the department, for the last three years, the
requirements of ORS 319.010 to 319.430 and 319.990 (1) to (3), as
required by subsection (1) of this section. If the department
determines that the person has not faithfully performed the
requirements, and that the lack of faithful performance was due
Enrolled House Bill 2211 (HB 2211-INTRO) Page 1
to reasonable cause and was without any intent to avoid payment,
the department may waive the additional bond requirement imposed
under this subsection. - }
{ + (2) Except as provided in sections 3, 4 and 5 of this
2003 Act, a bond under subsection (1) of this section shall be in
an amount that is equivalent to twice the dealer's estimated
monthly license tax, as determined by the department, or
$250,000, whichever is less.
(3) The department may reduce or increase the required amount
for a bond as provided in sections 3 and 4 of this 2003 Act. + }
(4) { - Any - } { + A + } bond given in connection with ORS
319.010 to 319.430 { - shall be - } { + is + } a continuing
instrument and { - shall cover - } { + covers + } any and all
periods of time including the first and all subsequent periods
for which a license may be granted in consequence of the giving
of the bond. The liability of the surety on the bond for the
aggregate of all claims { - which - } { + that + } arise
{ - thereunder shall - } { + under the bond may + } not
exceed the amount of the penalty of the bond. No recoveries on
any bond or any execution of any new bond { - shall - }
{ + may + } invalidate any bond, but the total recoveries under
any one bond { - shall - } { + may + } not exceed the amount
of the bond.
(5) A dealer required under this section to obtain a bond may
demand by proper petition a hearing on the necessity of
{ - such - } { + the + } bond or the reasonableness of the
amount required. { - A hearing shall be granted and held - }
{ + The department shall grant the petition for a hearing and
shall hold the hearing + } within 10 days after the demand
{ - therefor - } { + for the hearing + }. The decision of the
department
{ - shall become - } { + becomes + } final 10 days after
service of the order on the dealer. { + The hearing is not
subject to the requirements of ORS 183.413 to 183.470. + }
SECTION 2. { + Sections 3, 4 and 5 of this 2003 Act are added
to and made a part of ORS 319.010 to 319.430. + }
SECTION 3. { + (1) For a dealer described in subsection (2) of
this section, the bond required by the Department of
Transportation under ORS 319.050 shall be in an amount that is
equivalent to twice the dealer's estimated monthly license tax,
as determined by the department, or $100,000, whichever is less.
(2) The provisions of subsection (1) of this section apply to a
dealer who held a valid dealer's license on October 23, 1999,
issued under ORS 319.010 to 319.430, and who, since October 23,
1999, has:
(a) Not been required to file a bond greater than $100,000; and
(b) Performed, as determined by the department, the
requirements of ORS 319.010 to 319.430, including the payment of
all taxes, penalties and other obligations of the dealer arising
out of ORS 319.010 to 319.430. + }
SECTION 4. { + (1) The Department of Transportation shall
increase a dealer's bond filed under ORS 319.050 to an amount
that is equivalent to twice the dealer's estimated monthly
license tax, as determined by the department, or $1 million,
whichever is less, if, within a 24-month period, the dealer:
(a) Was late three or more times in filing reports or making
payments to the department;
(b) Had three or more checks or electronic funds transfers to
the department dishonored for lack of funds or credit;
Enrolled House Bill 2211 (HB 2211-INTRO) Page 2
(c) Failed to maintain or make available a record of all
purchases, receipts, sales and distribution of motor vehicle fuel
as required under ORS 319.390; or
(d) Had a motor vehicle fuel dealer license issued in this
state or another jurisdiction revoked.
(2) The department may waive an increase in the bond amount
under subsection (1) of this section if the department determines
that the dealer did not intend to avoid payment of license taxes
when the dealer engaged in the conduct described in subsection
(1)(a), (b) or (c) of this section or when the dealer engaged in
the conduct that led to the license revocation described in
subsection (1)(d) of this section. If the department waives an
increase in the bond amount, the bond shall remain at an amount
that is:
(a) Required under section 3 of this 2003 Act for a dealer
described in section 3 of this 2003 Act; or
(b) Required under ORS 319.050.
(3) If the department increases the bond amount as provided in
subsection (1) of this section, the dealer may, after 24 months,
request in writing that the department reduce the bond amount.
The department shall reduce the bond amount if the department
determines that the dealer, in the 24 months prior to the
dealer's written request:
(a) Filed timely reports and made timely payments;
(b) Had no checks or electronic funds transfers to the
department dishonored for lack of funds or credit;
(c) Maintained and made available a record of all purchases,
receipts, sales and distribution of motor vehicle fuel as
required under ORS 319.390; and
(d) Did not have a motor vehicle fuel dealer license issued in
this state or another jurisdiction revoked.
(4) If the department determines that the dealer met all of the
requirements under subsection (3) of this section, the department
shall reduce the bond required of a dealer described in ORS
319.050 or a dealer described in section 3 of this 2003 Act to an
amount that is equivalent to twice the dealer's estimated monthly
license tax, as determined by the department, or $250,000,
whichever is less.
(5) If the department determines that the dealer failed to meet
the requirements under subsection (3) of this section and that
the failure was not due to the dealer's intent to avoid payment
of license taxes, the department may reduce the bond required of
a dealer described in ORS 319.050 or a dealer described in
section 3 of this 2003 Act to an amount that is equivalent to
twice the dealer's estimated monthly license tax, as determined
by the department, or $250,000, whichever is less.
(6) For purposes of this section, the department shall adopt
rules establishing what constitutes evidence that a dealer did
not intend to avoid payment of license taxes. + }
SECTION 5. { + If the amount that is equivalent to twice the
amount of a dealer's estimated monthly license tax, as determined
by the Department of Transportation, is an amount that is less
than $1,000, the bond amount required by ORS 319.050 or section 3
or 4 of this 2003 Act shall be $1,000. + }
SECTION 6. { + Section 12a, chapter 769, Oregon Laws 1999, is
repealed. + }
SECTION 7. ORS 319.060 is amended to read:
319.060. In lieu of the bond or bonds in total amount as fixed
under ORS 319.050 { + or section 3, 4 or 5 of this 2003 Act + },
any dealer may deposit with the State Treasurer, under such terms
Enrolled House Bill 2211 (HB 2211-INTRO) Page 3
and conditions as the Department of Transportation may prescribe,
a like amount of lawful money of the United States or bonds or
other obligations of the United States, the State of Oregon, or
any county of this state, of an actual market value not less than
the amount so fixed by the department.
----------
Passed by House February 17, 2003
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate March 20, 2003
...........................................................
President of Senate
Enrolled House Bill 2211 (HB 2211-INTRO) Page 4
Received by Governor:
......M.,............., 2003
Approved:
......M.,............., 2003
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2003
...........................................................
Secretary of State
Enrolled House Bill 2211 (HB 2211-INTRO) Page 5